SenseTime Group (20) H1 2026 earnings summary

Executive summary

• Achieved first IFRS net profit of RMB 617.3 million for 1H 2026, reversing prior losses, driven by revenue growth, improved gross margin, and fair value gains on investments.

• Group revenue reached RMB 2,911 million, up 23.4% year-over-year, with Generative AI revenue up 28.2% and Computer Vision revenue up 13.9%.

• Recurring Revenue surged 124.4% to RMB 1,144.7 million, now 39.3% of total revenue, reflecting a shift to ongoing service models.

• Gross margin expanded to 41.4% from 38.5% year-over-year, supported by business mix optimization and efficiency gains.

Financial highlights

• Gross profit increased to RMB 1,206.2 million, with gross margin at 41.4%.

• EBITDA reached RMB 1,388.1 million, compared to a loss of RMB 847.7 million in the prior year.

• Adjusted (Non-IFRS) net loss narrowed 67.3% to RMB 385.9 million.

• Adjusted EBITDA was RMB 384.9 million, versus a loss of RMB 540.3 million year-over-year.

• Total cash reserves stood at RMB 13,158 million as of 1H 2026.

Outlook and guidance

• Strategic focus on scaling multimodal agent capabilities, expanding recurring revenue, and deepening system-level AI integration.

• Plans to further commercialize domestic compute, enhance Token Factory efficiency, and drive multi-agent collaboration in enterprise and personal workflows.

• Emphasis on evolving from per-Token billing to task-based pricing and delivery.